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AKARTA: The government had agreed to extend the regulation on a tax-holiday facility that expired in August for one more year because the facility was still needed by both local and foreign investors, Coordinating Economic Minister Chairul Tanjung said Thursday.

'€œWe agreed at our meeting that the facility will be extended for one more year,'€ Chairul said at a press conference following a coordination meeting with the Investment Coordinating Board (BKPM), as well as the finance, trade and industry ministries.

With the extension, local and foreign investors involved in certain business activities are still able to obtain the tax facilities until August next year.

The tax-holiday facility, which provides a tax break for five to 10 years, is available for manufacturing projects in five pioneer sectors '€” base metals; oil refining and basic petrochemicals; machinery; renewable energy; and telecommunications equipment '€” with a minimum value of Rp 1 trillion (US$84.65 million).

Chairul said that it was also decided at the meeting to relax a set of regulations on tax holidays, which would cut the long waits faced by investors when requesting the facility.

'€œWe know that tax incentives in our neighboring countries are very attractive. So, we want to give high flexibility in order to raise our competitiveness. It does not mean that we follow our neighboring countries 100 percent in terms of tax incentive attractiveness,'€ he said.